Retire in your 30s ?

There aren't many things you look forward to more than retirement once you start working a 8 to 6. Who among us wouldn't prefer to be relaxing on a beach than at a desk, really? It's a cruel fact for many of us that we can't relax until we are in our late 60s or early 70s, but wouldn't it be good to break this complacency and retire earlier? In our opinion, yes.

We are aware that early retirement is a personal decision. Giving your notice by the age of 40 or even 30 is a success for some people. Others may think it's early to bake a cake with "I quit" inscribed in pink fondant icing at the age of 50. We'd want to welcome in what financial gurus refer to as "The FIRE technique," regardless of your retirement objectives. In order to organise your finances and control your spending so that you may stop working as early as your 40s, you can use the financial independence, retire early, or "FIRE" strategy. In order to retire before turning 40, many who utilise this strategy attempt to save a significant amount of their income – up to 75%.

what is FIRE method ???

Sound absurd? With the FIRE technique, you intelligently invest your income rather than blowing it all now so you won't need to work in the future. By doing this, you can begin to generate enough passive income to go for 60 or even 70 years without receiving a paycheck

Well, yes, we get it. Quitting your job permanently by the time you turn 40 may seem absolutely impossible right now. Yet, it is feasible, especially if you budget your money according to the FIRE approach.

As you would understand, FIRE is not something you do randomly. You must take managing your finances seriously if you want it to succeed. The key to success is dedication, and without a real commitment, you won't have enough money saved for retirement. Do not forget that we are discussing saving money for the rest of your life, not for that brand-new car.

How to retire early with the FIRE technique

The FIRE technique is definitely your best option if quitting your job in your forties sounds like the ideal way to live your life. This is it, in all of its splendour. What you can do to assist with future planning is as follows:

1. Begin investing to prepare for retirement.

Starting early with your preparation is the first step to becoming financially independent by the age of 40. Money, however, does not grow on trees. So where does it actually grow? inside investing. Do it intelligently and early.

The FIRE strategy is actually focused on generating passive income, or money you earn without working, so you can live off of it. Passive income isn't free, though. It entails making significant up-front investments and saves in order to reap the benefits afterwards.

Now, compound interest is the single factor that makes this work. You might wonder what compound interest actually is. When money is deposited into a compound interest account, the principal amount and annual interest earned by the account determine how much the account will eventually grow to be worth.

2. Keep expenses low

Still with us here? Great. The second thing you need to know about the FIRE method is that you should keep your expenses at an absolute minimum. The less you spend now, the more you’ll have for your work-free years.

This all sounds great, we know. But, if you’re struggling to see how you can cut down on your spending, you’ll be happy to hear that this isn’t an impossible task.

First, you’ll need to pay off any of your debts. If you want to retire early, interest rates on credit cards and loans are going to quickly eat away at your savings, which means you’ll need to work for way longer than you really want to.

3. Find ways to boost your income

If you want to retire early, maximizing your income while you’re still working is critical. Having money makes it easier to passively accumulate more, thanks to the power of compound interest.

Try to find ways to boost your income right now. This might involve working a second job or starting a new side hustle. There’s no one-size-fits-all solution here. What’s important is finding ways to make extra income that works best in your life.

Working more right now might sound like a bummer. However, while the goal of FIRE is to retire early, this is impossible to do without working quite a lot in the meantime. Putting in those extra hours now can make a huge difference down the line, so it’s well worth the hustle when you’re young.

4. the golden rule

You must not forget to save enough money which is 25 or 30 times higher than your current annual expense.

For example, many of you who has a yearly expense of 6 lakhs normally might think that you will be needing 7 to 10 crores normally to lead a retirement life . But the sweet reality is that you can live a luxurious retired life with some 3 to 4 crores.